September 30, 2014

groovygirl is keeping an eye on the outflow of funds from PIMCO. 12% now? Click here.

The number is not necessarily the issue. The issue is why pull money just because Gross left? Doesn’t sound right. Something else happening. And if it’s happening at PIMCO, is it a bond market problem. The government can solve a PIMCO problem. The government can not solve a systemic bond market problem. What is it? Don’t know. Have to wait and see. Is this a global issue? And where are the funds going? Stocks? Cash? Overseas?

That strategy depends on the rest of the world remaining strong. But if we see a turn down 2016-2020, it is hard to imagine Europe surviving the coming political storm.

groovygirl thought this was very important. This seems the only option to “control” the European debt implosion as everyone else is in a debt collapse, too. It’ s hard for a group of drowning men to save each other. May be impossible, but it gives us an idea of what the “first world”, US allies will try to do. Of course, there is that nasty unknown of shadow dark pool trading…..

Pam Martens with Wall Street On Parade has written a few very interesting articles. And groovygirl is still looking at those recent deaths of bankers and traders.

Click here for an article about the government’s investigation of the oil and gas industry and possible price rigging and control. Explains how banks rig commodity prices. Also explains where all that taxpayer bailout money went. They bought assets! Hint: you should be doing the same.

Click here for Pam Martens article on the recent deaths in the banking and related industries. And that reporter is still missing. Also explains possible bad long play in life insurance industry. Pandemic would probably help the position.

Here is another very interesting article on the mysterious deaths. (Read the whole thing, very good, especially that part about V.)

In groovygirl’s humble opinion: although, these are just a few articles, it is clear just from the revolving doors between public and private industry (clear for anyone to see on the linked-in profile of an executive) that there is a silent contract between public government and private companies deemed too big to fail. groovygirl does have one question. Assuming that government is “investigating” these shenanigans and are getting close enough to have certain people bumped off. Would not that cause the manipulating to stop, slow down, or transfer to another company/office/country? Why then have we not seen a drastic change in markets, since no one or fewer people are “manipulating” them. Such as LIBOR, currency swaps, etc.? Groovygirl would suggest there are some possible reasons for this: there is no manipulation at all, we are seeing the result, the government (or certain parts of government) is much more involved than previously thought and is now controlling that manipulation directly, or the same banks are doing the same thing and they are counting on government to look the other way while they “slim” their staff. Lots of questions, few answers.

Click here for a post from Jesse on Bear Sterns. The Bear Sterns and MF Global were triggered by margin calls.

The typical shadow banking system includes securitization vehicles,
asset-backed commercial paper (ABCP) conduits, money market mutual
funds, markets for repurchase agreements (repos), investment banks, and
mortgage companies. However, the shadow banking area has grown in
importance to rival traditional depository banking and was a primary
factor in the subprime mortgage crisis of 2007-2008 and global recession
that followed.

October 10, 2013

Good post by Reggie Middleton on the Greek debt restructure and bailout. It is a smaller picture of the larger picture of this cycle: a wholesale wealth transfer. This is the current mode of operation going on around the world, especially Europe. It will eventually hit the US in some form (higher taxes, deflation or hyperinflation or all of the above), be prepared. The only positive thing that the US has, is the printing press. But that just means the Greek Tragedy for “advanced countries) takes 9 acts instead of 5…..but the end is the same. Massive transfer of wealth.

The news of the potentially greater financing needs comes at a sensitive time for the country. Many in Europe, particularly in Germany, are losing their patience and there has been increased talk of the country leaving the common currency zone. Over the weekend, German Finance Minister Wolfgang Schäuble reiterated his skepticism of additional aid to Greece. “We can’t put together yet another program,” he said on Saturday, adding that it was irresponsible to “throw money into a bottomless pit.”

groovygirl says: even though Syria may or may not happen, Martin illustrates an excellent point. Some crisis will cause our creditors to stop buying US debt and sell what US debt they are holding as a consequence of ridiculous US foreign policy. Since you, individually, can not change US foreign policy, make sure your retirement money is protected.